NSDL shares may see pressure as core depository business drags Q3 results

Shares of National Securities Depository Ltd. (NSDL) are expected to open Thursday's session on a weak note after the company reported a subdued performance for the December quarter, weighed down by a slowdown in its high-margin core depository business.

On a quarter-on-quarter basis, NSDL's revenue declined 10.1%, largely due to a sharp 17% drop in the core depository segment.

The weakness in the core business also hurt profitability, with EBITDA margins contracting by 214 basis points to 29.8% during the quarter.

Net profit fell 18.8% sequentially.

Digital banking emerged as the sole bright spot in the quarter, with EBIT surging 106.2% quarter-on-quarter. However, the segment's relatively low margin of around 5% meant it was insufficient to offset the broader slowdown in the core depository business.

The depository and database management segments both slumped with a revenue downtick and margin compression.

With the earnings performance falling short of expectations, traders are now awaiting further clarity from the company's upcoming investor presentation.

NSDL	Q3FY26	Q2FY26	% QoQ
Revenue	359.6	400.04	-10.1%
EBITDA	107.30	127.93	-16.1%
EBITDA %	29.8%	32.0%	-214
Net Profit	89.6	110.39	-18.8%

NSDL shares ended Wednesday's session 2.65% higher at ₹1,011.85. Despite the uptick, the stock is down 5% so far in 2026.

Excluding Wednesday's gain, the stock had declined in each of the previous eight consecutive sessions.

From its 52-week high of ₹1,425, NSDL shares have corrected by nearly 30%.